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18 Feb 2013
Forex Flash: Aftermath of G20 takes yen lower – Deutsche Bank
After a lively week for currencies, ending with the G20's fairly tame communiqué on avoiding exchange rate misalignments, the USD/JPY is again making strong gains overnight as markets take the G20's somewhat benign statement as a green light for further yen depreciation.
The yen has extended its losses against the dollar in overnight trading, trading 0.4% weaker against the USD and adding to Friday's -0.67% depreciation. Fresh headlines in Tokyo overnight have helped take the USD/JPY briefly above the 94.00 level while the Nikkei is trading 2.1% higher.
According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “Speaking in parliament in Tokyo overnight, the Japanese PM hinted that buying foreign bonds is a monetary policy option and the law governing the BoJ could be revised if it fails to get results.” Abe also added that it is the norm for governments to dictate a price target to the country's central bank.
The yen has extended its losses against the dollar in overnight trading, trading 0.4% weaker against the USD and adding to Friday's -0.67% depreciation. Fresh headlines in Tokyo overnight have helped take the USD/JPY briefly above the 94.00 level while the Nikkei is trading 2.1% higher.
According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “Speaking in parliament in Tokyo overnight, the Japanese PM hinted that buying foreign bonds is a monetary policy option and the law governing the BoJ could be revised if it fails to get results.” Abe also added that it is the norm for governments to dictate a price target to the country's central bank.